Syz the moment

Shortly after 10:15 a.m. ET, there was an explosion of trading activity in far out-of-the-money options tied to the Cboe Volatility Index (commonly known as the VIX), which tracks the 30-day implied volatility of the S&P 500 based on options prices. The volumes were centered in VIX call options that expire in May, for the 55, 65, and 75 strikes. The VIX, also known as Wall Street’s “fear gauge,” has rarely eclipsed these levels.

Gold: -3% S&P: -5% Apple: -9% Amazon: -14% Microsoft: -16% Google: -19% Nvidia: -22% Bitcoin: -24% Palantir: -33% Coinbase: -41% Tesla: -43% Ethereum: -46% MicroStrategy: -56% Dogecoin: -59% Trump Media: -70% Trump Coin: -83% Fartcoin: -89% Melania Coin: -94%

When Donald Trump won the election on November 5, the so-called "Trump trades" surged—Tesla, crypto, tech, oil, and banks all rallied. But since Trump officially took office on January 20—and especially over the past week—these trades have started to unwind. Source: HolgerZ, Bloomberg

Cash allocation of US equity funds has declined to just ~1.5%, the lowest on RECORD. The Fear of Missing Out (FOMO) has never been greater. This creates downside risk Source: Global Markets Investor, Goldman Sachs

Bloomberg

Source: Bloomberg

While the internet would go on to become ubiquitous and a source of tremendous wealth and innovation -- at the height of the dot com bubble it was pure Hype at that stage... certainly relative to the valuations prevailing at that time. Note however that Mag 7 P/Es and fundamentals are quite different from the dot-com bubble. And that during the current AI bubble, we haven't seen the kind of IPO frenzy which prevailed at the time of the dot.com bubble. So maybe this bubble has more room to go...

(h/t @zerohedge)